What is the increase in property taxes when building an accessory dwelling in Berkeley?

New Avenue created a 312-square-foot ADU with one bedroom, one bathroom, and an open living/kitchen area for a homeowner in Berkeley. She wanted to add a home to an area that badly needs more housing and bring in some rental income.

How much of a tax increase do we see from adding an ADU in Berkeley, California?

A small ADU like this one costs a total of $250,000. That includes design, permitting, engineering, red tape, all site work, construction, and project administration. As a result of adding an ADU like this, you can expect to see a tax increase of approximately $1,250 per year. The main home is not reassessed after ADU construction.

For the owner of a rental unit, the tax increase is no problem. A one-bedroom home in this area rents for more than $24,000 per year. That will cover the payments on the ADU and the tax increase, leaving rent money left over for the homeowner to use as needed.

New Avenue handles every part of your construction project, whether it’s a new home, an accessory dwelling unit, a remodel, or an addition.  The cost includes custom design, permitting, engineering, red tape, all site work, and construction. We hold ourselves to the highest standard, keeping the project on budget with complete transparency and professionalism.

Schedule your free call today to have all of your questions answered.